11:46 10 December 2013
Investors should consider cash accounts instead of savings bonds because of interest rates.
Traditionally, placing your money into long-term savings bonds yielded a better return than maintaining cash accounts. It may no longer be that way. Interest rates are such that it might just be better for investors to maintain their interest drawing cash accounts than investing in savings bonds.
Current accounts however, have been seeing an increase instead of the downward trend in interest rates found in savings accounts. This has generated a trend where banking customers no longer remain with a single bank for an extended period of time but switch banks frequently.
The current economic climate means that inflation rates often undo interest rates making it difficult for your money to grow. Taking advantage of these types of offers on current accounts can see your account grow even in this economic climate.
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